Renowned Analyst Warns: DOGE and SHIB Might Dive to These Bottoms! - News-Credit-Mortgage-Coin

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Wednesday, September 29, 2021

Renowned Analyst Warns: DOGE and SHIB Might Dive to These Bottoms!

 



According to analyst Ali Martinez, DOGE and Shiba Inu may soon retest a critical support level that will determine whether a new downtrend will start.


Social engagement metrics for Dogecoin and Shiba Inu have fallen since May.

According to the analyst, DOGE is now sitting at weak support and is ready to retest $0.17.

Similarly, SHIB is preparing for a decline to $0.00000582.

Dogecoin and Shiba Inu lost crowd support that allowed them to skyrocket to all-time highs. Until individual interest returns, both assets could suffer further damage, according to the analyst.


Analyst: DOGE and SHIB may face sharp decline!

Meme coins are losing steam. DOGE and SHIB rose consecutively earlier this year, posting extraordinary returns before a market-wide crash in May. Along with many other cryptocurrencies, both hit all-time highs as individual interest in the market peaked. Data from LunarCRUSH shows that social engagement metrics for Dogecoin and Shiba Inu are rising amid the market frenzy.



Source: LunarCRUSH



LunarCRUSH measures social media interactions such as favorites, likes, comments, replies, retweets and shares. DOGE recorded more than 1.76 billion on May 9, while SHIB reached 122 million. However, the level of social activity for both entities has dropped since May. Dogecoin's social activity currently has around 150 million daily interactions, while Shiba Inu's has close to 10 million. As interest in DOGE and SHIB weakens, their prices may face a sharp decline.


Ali Martinez: Dogecoin could fall towards these levels!

Dogecoin's price action has been stagnant for the past five months. The tenth-largest cryptocurrency by market cap has recorded a series of lower lows, while the $0.17 support level could absorb any dips. From a technical perspective, price behavior appears to lead to a descending triangle formation on the daily chart. A significant price action could be imminent as DOGE approaches the top of its consolidation pattern. A decisive daily candlestick near the hypotenuse of the triangle above $0.26 could result in an explosive breakout towards $0.41.



Source: TradingView

Still, traders should watch the x-axis of the triangle at $0.17 as support could see DOGE drop to $0.04. The macro outlook points to more recession until support or resistance is broken, while the near future is bearish. Dogecoin is currently held at $0.198 by the setup trendline of Tom DeMark (TD) Sequential. This support level weakens over time, indicating that a breach is imminent. This level is likely to break soon, which will push DOGE down towards the x-axis of the triangle at $0.17.


Analyst warns: SHIB price may plunge to these bottoms!


Like Dogecoin, the Shiba Inu is in a long period of recession. Its price appears to be inside a parallel channel on the daily chart. Every time SHIB has risen to the upper or middle border of the channel since June 5, a rejection has occurred that has pushed prices to the lower edge. From this point on, it tends to rebound, which is consistent with the characteristic of a channel. SHIB was recently rejected from the upper border of the channel and is currently trading below the middle trendline.




Source: TradingView
These conditions suggest that if the price action seen last month repeats, the Shiba Inu will dive to the lower edge of the channel at $0.00000582. It is worth noting that SHIB should stay at $0.00000582 in case of a bearish breakout as closing below this critical demand wall could lead to a 36% correction.


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